Recent events in the stock and cryptocurrency markets are raising concerns among investors. NVIDIA's forecasts and the overall crypto situation are significantly influencing stock dynamics and market capitalization.
NVIDIA's Guidance Falls Short of Expectations
The S&P 500 index reached a historic high, leading to increased investor expectations. Although NVIDIA's performance exceeded estimates, it did not meet higher anticipations. The company expects third-quarter sales to be around $54 billion, in line with analysts' average forecast but below the optimistic $60 billion projection. This tepid outlook raises concerns over a slowdown in AI spending growth.
Experts note that even the announcement of a $60 billion stock buyback did not improve market sentiment. After the report was released, NVIDIA's stock fell over 3% in after-hours trading, although it has still risen 33% year-to-date.
Crypto Market Declines and Bitcoin Predictions
The overall crypto market capitalization fell by 0.53% to $3.86 trillion. Among the top ten cryptocurrencies, only SOL and DOGE posted gains. Currently, 61% of bettors in prediction markets are wagering that Bitcoin will fall below $100,000 before 2026. According to Presto Research analyst Min Jung, large-scale selling by whales and long-term holders has been met with sufficient buying demand; however, the need for new buyers remains critical. If demand fails to keep pace, a drop below $100,000 becomes more likely.
DAT Stocks All Decline
Yesterday, shares of digital asset finance companies (DAT) also saw a sharp decline:
* Strategy (MSTR): -2.65% * BitMine (BMNR): -7.85% * SharpLink (SBET): -3.26% * Upexi (UPXI): -3.92% * DeFi Development Corp (DFDV): -4.63%
Standard Chartered issued a report suggesting that Ethereum reserve companies are undervalued and that the current pullback could be a good entry point. However, does this indicate a comprehensive correction in DAT valuations?
Markets continue to experience volatility amid diminishing expectations from major companies like NVIDIA and uncertainty in the crypto market. Investors remain cautious, considering current trends and forecasts.
